The defence contractor, which is building Royal Navy Type 31 frigates at Rosyth and is tipped to secure a £1 billion deal to construct four ships for the Danish navy, says the shortage of qualified local workers has forced it to turn to international recruitment.

Babcock is also a finalist for a Swedish navy contract for up to seven ships of the same design, with the company emphasising that deadlines on critical defence projects cannot be delayed by a lack of skilled labour.

A Babcock spokeswoman said: “While most roles are filled locally, the specialist nature and availability of the skills required to support our build programme means we may need short-term international recruitment to meet delivery timelines. This ensures progress on vital defence programmes while we continue to strengthen Scotland’s skilled workforce.”

The decision has fuelled criticism of the Scottish Government’s industrial and education policies, amid claims that college training in key trades such as welding, engineering and mechanics has fallen behind industry needs.

A senior UK government source told reporters: “At exactly the point at which we should be training the next generation of apprentices in Scotland, we’re seeing real-terms cuts in further education colleges expenditure in Scotland.”

Concerns have also been raised over the Scottish Government’s previous refusal to fund a new welding skills centre on the Clyde, a project initially backed by Rolls-Royce.

Industry body ADS, which represents defence and aerospace companies, warned of “chronic skills shortages” creating “roadblocks” to growth. It said two-thirds of firms, mostly small and medium-sized enterprises, cited skills shortages as their greatest challenge.

A Scottish Government spokesperson defended its record, saying it is already investing in reforms to boost training and apprenticeships across key industries.

“We are delivering a transformation programme to reform the post-school education and skills system,” the spokesperson said. “Alongside this reform, we’re taking targeted action to meet urgent skills needs in sectors like offshore wind, social care, engineering and advanced manufacturing. The latest data from the Scottish Funding Council shows there are currently more than 14,000 full-time equivalent college students on engineering courses.

“Recognising the vital role Scotland’s colleges have in education and the country’s economy, the Scottish Funding Council is providing a 2.6% increase in teaching funding for 2025-26. We are also investing in infrastructure: Fife College will be moving into the brand new Dunfermline Learning Campus shortly, which the Scottish Government is supporting with up to £154.5 million capital investment.”

Scotland’s defence industry currently employs around 16,000 workers, but demand is expected to rise sharply as new naval and aerospace contracts come online.